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Financial Times and other media report on the interest shown by the City and independent analysts by the particular use by Tesco of its loyalty scheme. Tesco has reported a better than expected Christmas sale but these sales figures might hide a worse performance as Tesco counts coupons as cash inflating the sales. Competitor Sainsbury's do not count coupons as cash but still performed as well as Tesco.





However, the City was surprised by the speed at which Tesco’s international expansion tailed off. Tesco said that tough economic conditions in Central Europe and the anniversary of a big acquisition in South Korea depressed international sales growth.





Tesco said that doubling the discounts available through its Clubcard offer had helped to stop “promiscuous” customers from shopping around for the first time during the recession.



On this issue Tesco has stated that customers used coupons with a value of £34m adding about 0.7 % to the sales.



That Tesco still appears to be struggling in the US were it operates under the name Fresh&Easy seems to be confirmed by the Christmas trading statement the company published 12th January. The statement boasts of having increased sales by 35% but as this number includes 27 stores opened since the last holiday period it is not possible to tell whether Fresh & Easy is becoming more profitable or the opposite.



Links below to the articles used for the above article.



Learn more at: http://www.ft.com/cms/s/0/0a5326a4-ff48-11de-823b-00144feab49a.html

http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6985592.ece

http://freshneasybuzz.blogspot.com/2010/01/what-fresh-easys-35-total-sales.html